Compare taxes and see how much you save moving from Missouri to Tennessee
Missouri charges up to 4.7% income tax (technically progressive but the top bracket starts at just $9,072, making it effectively flat for most workers). Tennessee charges no income tax at all. The income tax comparison clearly favours Tennessee — at $100,000 income, Tennessee residents save approximately $4,700/year in income taxes vs Missouri. Tennessee compensates with the highest combined sales tax in the US (~9.55% average with local add-ons), and Missouri's sales tax average is ~8.9% — similar combined burden. Property taxes favour Missouri: ~1.01% vs Tennessee's ~0.67%. On a $300,000 home, Tennessee saves approximately $1,020/year in property taxes. Net position at $100,000 income for a homeowner: Tennessee saves approximately $5,720/year in income + property taxes combined. Tennessee is the clear winner for working professionals and high earners.
Top Rate (above $9,072)
Top bracket reached at $9,072 — effectively flat for most earners; property tax ~1.01%
No Income Tax
No income tax; 7% state sales tax (highest in US); property tax ~0.67%
At $100,000 income:
That is $475/month back in your pocket!
| Income | MO Tax | TN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,350 MO income tax (~4.7% effective); ~$1,515 property ($150K × 1.01%) = ~$3,865 total | $0 TN income tax; ~$1,005 property ($150K × 0.67%) = ~$1,005 total | TN saves ~$2,860 | $28,600 |
| $75,000 | $3,525 MO income tax; ~$2,020 property ($200K × 1.01%) = ~$5,545 total | $0 TN income tax; ~$1,340 property ($200K × 0.67%) = ~$1,340 total | TN saves ~$4,205 | $42,050 |
| $100,000 | $4,700 MO income tax; ~$3,030 property ($300K × 1.01%) = ~$7,730 total | $0 TN income tax; ~$2,010 property ($300K × 0.67%) = ~$2,010 total | TN saves ~$5,720 | $57,200 |
| $150,000 | $7,050 MO income tax; ~$4,040 property ($400K × 1.01%) = ~$11,090 total | $0 TN income tax; ~$2,680 property ($400K × 0.67%) = ~$2,680 total | TN saves ~$8,410 | $84,100 |
| $200,000 | $9,400 MO income tax; ~$5,050 property ($500K × 1.01%) = ~$14,450 total | $0 TN income tax; ~$3,350 property ($500K × 0.67%) = ~$3,350 total | TN saves ~$11,100 | $111,000 |
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Moving between Missouri and Tennessee? Missouri's city earnings taxes, partial-year returns, and Tennessee's unique no-income-tax structure need specialist guidance. Get matched with a CPA who specialises in South/Midwest state moves.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Yes — Tennessee has zero income tax on wages, salaries, business income, and retirement distributions. Tennessee previously had the Hall Income Tax, which taxed dividends and interest income at 3% (reducing to 1% in 2020). The Hall Tax was fully repealed effective January 1, 2021. Since then, Tennessee has zero state income tax on any type of income — wages, self-employment, capital gains, dividends, interest, rental income, or retirement distributions. Tennessee's constitution only authorizes income tax on 'income derived from stocks and bonds' — and the Hall Tax was the only such tax. Its repeal was not a policy option but a constitutional-era decision, making Tennessee one of the most tax-advantaged states for income.
Missouri's statewide sales tax is 4.225%, with local additions averaging approximately 4.7% for a combined average of ~8.9%. Missouri does, however, tax food at a reduced 1.225% state rate, and some cities exempt certain food categories further. Tennessee's statewide sales tax is 7% — the highest state rate in the US. With local additions averaging 2.55%, Tennessee's combined average is approximately 9.55%. However, Tennessee taxes food at a reduced 4% state rate (plus local taxes). The practical difference: Missouri is somewhat cheaper on sales taxes for high-spending households and those who buy groceries frequently. For annual spending of $60,000, the Tennessee vs Missouri combined sales tax difference is approximately $400–600/year in Tennessee's favour against Missouri, but it varies significantly by county and city.
They serve different tech niches. Nashville: healthcare technology is the dominant industry — HCA Healthcare (largest US for-profit hospital system), Envision Healthcare, Change Healthcare, HealthStream, Parallon, and dozens of health tech startups; Oracle relocated its HQ to Austin but has major Nashville operations; Amazon's HQ2 South (Nashville Operations Center of Excellence) is bringing thousands of tech jobs. Kansas City: major logistics and supply chain tech (H&R Block, Cerner/Oracle Health acquired, Garmin, Sprint/T-Mobile Midwest); financial services (Hallmark, AMC Networks, LabOne). Nashville is growing faster and has a clearer tech career trajectory; Kansas City is strong for logistics, telecom, and mid-market corporate careers. Tax advantage: Tennessee is unambiguous on income tax.
Tennessee property tax rates vary significantly by county: Williamson County (Franklin, Brentwood) has property tax rates of approximately 0.6–0.8% of assessed value; Rutherford County (Murfreesboro) approximately 0.55–0.7%; Shelby County (Memphis) approximately 1.3% (higher than Nashville suburbs due to Memphis city taxes); Knox County (Knoxville) approximately 0.6–0.7%; Hamilton County (Chattanooga) approximately 0.6–0.8%. The lowest-tax areas for overall burden (income = $0, property = low, sales = lower local rates) are suburban Nashville counties (Williamson, Rutherford, Wilson) and suburban Knoxville. Memphis-area residents face higher property taxes that reduce Tennessee's overall advantage. For maximum Tennessee tax benefit: suburban Nashville beats Memphis.
Yes — two major Missouri cities have local earnings taxes: Kansas City (1% on wages earned in or by residents of KC, regardless of state residence) and St. Louis (1% on wages earned in St. Louis city). These earnings taxes apply to residents of those cities and to non-residents working within city limits. Residents of Kansas City suburbs (Overland Park in Kansas, Lee's Summit, Olathe) who work in Kansas City still owe the 1% KC earnings tax on work income. This effectively adds 1% on top of Missouri's 4.7% state rate for Kansas City and St. Louis workers — taking their combined rate to 5.7%. Missouri's suburban and rural residents (Springfield, Columbia, Jefferson City) pay only the state 4.7% rate.